This report, prepared by a student, provides a comprehensive analysis of international trade dynamics, specifically focusing on Argentina and El Salvador. The report begins by defining and measuring economic openness in both countries from 1998 to 2014, using import, export, and GDP data. It then examines the relationship between openness and economic development, calculating correlation coefficients to assess the impact on per capita GDP. Furthermore, the report applies Ricardo's model of comparative advantage, exploring absolute and comparative advantages in the production of Hammers and Widgets within the context of the two nations. The analysis includes detailed calculations of opportunity costs, production possibility frontiers, and the determination of optimal production and consumption under autarky. The report also provides tables and figures to illustrate key findings and trends, making it a valuable resource for understanding international trade concepts and their practical applications.
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